Analysis of charcoal market system in Handeni, Kinondoni and Magharibi "A" Districts, Tanzania

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Date

2021

Journal Title

Journal ISSN

Volume Title

Publisher

Sokoine University of Agriculture

Abstract

This study aims to analyse the charcoal market system in Handeni, Kinondoni and Magharibi A districts. Despite of the profits gained by charcoal actors in the value chain, the actors are not paying charcoal government fees and unregistered, thus making a significant loss of government revenues through royalties evasion. This study analysed the roles of each actor in value chain, examined the profits gained by each actor, analysed supporting functions and assessed enabling environments for charcoal business in study areas. A cross-sectional study was conducted to analyse the charcoal market system in study areas. Data were collected through questionnaire surveys, Indepth interviews and focus group discussion. Results from descriptive statistics show that among the interviewed respondents charcoal actors play a role of paying the charcoal government fees; Charcoal wholesalers were nearly three thirds (74.2%) while producers were less than half (47.1%) and one third (35.7%) were retailers. Charcoal transporters were more than half (52.8%) played a role of transporting charcoal with government payment documents while very few consumers (9.2%) had received charcoal receipts from sellers. There was a high statistical significant difference of profit gained between charcoal actors who were registered and those who are not registered by using Man- Whitney test (P <0.01). On supporting functions, descriptive analysis shows that about 23.5% of charcoal producers from Handeni district trained on charcoal business. Charcoal wholesalers (46.0%) from Magharibi A district accessed the bank loans. About 44.1% of charcoal producers from Handeni district urged roads were in good to support the business. All charcoal wholesalers from Magharibi A district used charcoal selling centres. All wholesalers found in Magharibi A district joined the charcoal groups. Most of charcoal wholesalers (92.3%) from Magharibi A district urged market information support charcoal business. All charcoal producers used earth mound kilns for charcoal productions. Thematic and descriptive analysis used to assess business enabling environments. Five themes emerged: Charcoal business registration, movement documents, revenue collection and records, agreement between TFS and DFNR- Zanzibar and unstainable charcoal production. Further, supporting functions are unavoidable to make charcoal actors to pay government fees and register their business. This study recommends that policy makers should develop charcoal trade guideline between Government of Tanzania mainland and Zanzibar.

Description

Masters Dissertation

Keywords

Charcoal market system, Charcoal government fees, Charcoal wholesalers, Handeni - Kinondoni - Magharibi "A" Districts, Tanzania

Citation